The Bruises and Bumps Company makes and sells skateboards at an average price of

Question

The Bruises and Bumps Company makes and sells skateboards at an average price of $70 each. Over the past year they sold 4,000 skateboards. Its closest competitor, Broken Bones Inc., sells its skateboards at an average price of $65. If the point price elasticity of demand for the skateboards produced by Bruises and Bumps is –2.5, and Bruises and Bumps were to lower their price by 5%, how many skateboards should they expect to sell this year? Please explain your answer Answer a. 6000 b. 3500 c. 4250 d. 4500 The Bruises and Bumps Company makes and sells skateboards at an average price of $70 each. Over the past year they sold 4,000 skateboards. Its closest competitor, Broken Bones Inc., sells its skateboards at an average price of $65. If the point price elasticity of demand for the skateboards produced by Bruises and Bumps is –2.5, and Bruises and Bumps were to lower their price by 5%, how many skateboards should they expect to sell this year? Please explain your answer 6000 3500 4250 4500 a. 6000 b. 3500 c. 4250 d. 4500

Explanation / Answer

The Bruises and Bumps Company makes and sells skateboards at an average price of

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.